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Six EPC players in battle for Qusahwira contract

Technical bids submitted to Adco, with award expected later this year for onshore work as part of second development phase of oilfield

Six leading engineering, procurement and construction players are understood to be competing for a key onshore contract involving the second development phase of Abu Dhabi Company for Onshore Petroleum Operations (Adco’s) Qusahwira oilfield, with the project likely to be valued at more than $500 million.

Sources close to the tender process told Upstream that technical bids were recently submitted by at least half-a-dozen EPC players and the contract is likely to be awarded by Adco later this year.

Those thought to have submitted bids include Spanish players Intecsa Industrial and Tecnicas Reunidas, Abu Dhabi’s National Petroleum Construction Company (NPCC), UK-listed Petrofac, Italy’s Saipem and China Petroleum Engineering & Construction Corporation (CPECC), industry sources said.

Japan’s JGC, South Korea’s Hyundai E&C, Samsung Engineering, SK E&C and GS E&C were also believed to have shown initial interest in the onshore job but are unlikely to have submitted bids, a second source added.

Adco revived the second development phase for its Qusahwira oilfield in August, nearly a year after the onshore project was put on the back-burner by the state-owned giant.

The Qusahwira oilfield is a part of Adco’s South East Asset and its second development phase is being targeted along with other projects at the Mender, Asab and Sahil fields.

Qusahwira has been producing about 30,000 barrels per day of crude since 2013 from its southern block, and the operator is targeting an additional 25,000 bpd from the new project, sources suggested.

The areas within the Qusahwira field being targeted for extra production include the Lower Bab Member (LBM), Thamama Zone-A (TZA), Thamama Zone-B (TZB) and Thamama Zone-F (TZF).

The ongoing tender for Qusahwira 2 relates to the first part of its second development phase, while a larger full phase project is expected to be carried out in 2024, industry sources have suggested.

The project’s workscope includes tying-in 112 wells and nine well pads, and the tie-in of additional appraisal wells.

The surface facilities required also include a gathering station (GS-2), one water injection cluster (WIC-3), modifications to the existing central degassing station, one production separator, booster pumps, one new gas injection train, one new gas lift compressor train, a common glycol regeneration unit and other associated facilities.

The state-owned giant is believed to have optimised the project’s front end engineering design, as part of efforts to reduce development costs.

The Qusahwira field lies in the southern part of the country, more than 200 kilometres from Abu Dhabi.